If the record discloses a conveyance from mortgagor to mortgagee without recitation of merger or extinguishment should the examiner consider a later conveyance by such mortgagee-grantee subject to the original mortgage, absent any evidence of payment?
Does the type of conveyance make any difference?
RECOMMENDATION:
No.
No.
DISCUSSION:
Extinguishment of a mortgage in such a situation depends on the intent of the purchaser. Unless there is apparent intent or advantage to him otherwise, the lien is extinguished. If no payment appears, the examiner should be safe in applying the doctrine of extinguishment.
Whether the conveyance be by quitclaim, warranty or release deed is immaterial.
First adopted August 25, 1960; amended June 19, 1975 and December 7, 1983. Formerly Title Standard No. 20.